Find the risk-free rate, Carlson Tech's stock has a beta of

Find the risk-free rate

Assignment Help Financial Management

Reference no: EM131982664

1. Carlson Tech's stock has a beta of 1.15 and a 10.5% required rate of return. The return on the market portfolio is 10%. Find the risk-free rate.

2. The primary reason WACC uses an after-tax cost of debt is…

a) that this lowers overall WACC and so increases the chances of obtaining a positive NPV.

b) interest expense is accounted for before taxes are determined, thus reducing taxable income.

c) taxes are paid after operating expenses and depreciation.

3. Compute double declining balance depreciation for;

One laboratory equipment cost $530,000 and has an expected life of 8 years. The salvage value is 10 percent of the cost. Show all work from year 1 until year 8.

Reference no: EM131982664

Questions Cloud

What would you do as the staff associate in situation : You are a staff associate at major public accounting firm and graduated from college two years ago. What would you do as the staff associate in situation? Why?

What was the interest expense for the year : If the tax rate is 20%, what was the interest expense for the year?

The net annual savings be if service were adopted : The bank charges a lockbox fee of $175 per day. What would the net annual savings be if the service were adopted?

What is the maximum monthly charge cookie cutter : What is the maximum monthly charge cookie cutter should pay for this lockbox system if the payment is due at the beginning of the month?

Find the risk-free rate : Carlson Tech's stock has a beta of 1.15 and 10.5% required rate of return. Find the risk-free rate. The primary reason WACC uses an after-tax cost of debt is…

What is the firm after-tax cost of debt on the bond : The firm's average tax rate is 30 percent and its marginal tax rate is 38 percent. What is the firm's after-tax cost of debt on the bond?

What is present value if the first payment comes immediately : what is the present value of the winnings? What is the present value if the first payment comes immediately?

Long or short the eurodollar futures contract : What rate can then company lock in by using the Eurodollar futures contract? Long or short the Eurodollar futures contract?

Calculate present value of the payments for option : Calculate the present value of the payments for option (a) if the interest rate is .75% per month.

User Account

All Pages